Apple Inc (AAPL)

[fmikehugo]

08:19 AAPL Apple: Additional commentary on iPhone (88.50 ) -Update-

Morgan Keegan says that although they have yet to demo an AAPL iPhone, their initial impression based on the specs and the price point is that the iPhone is likely to have a limited effect on RIMM and that is will compete more directly with more fashion-focused multimedia handsets.

Firm says the iPhone's slow network capability (it will run EDGE, not 3G) will hamper high-speed web-browsing in places without WiFi access, which will make PALM's Treo 750 look like a very capable web browsing device in comparison.

Also, the $500 price point is likely to turn off a large portion of the consumer/prosumer mkt, and with an additional $40/mo in data plan fees, they believe consumers will be more hesitant with the iPhone.

Lastly, firm says the iPhone is a long way away from being a highly usable email device, as the touch screen input is likely to be less than ideal for typing emails.